this isn't that far off from how some european systems work.
for example, in the UK[0], if you lose a lawsuit, you have to pay not only your attorney's fees, but the other party's attorneys fees. It gets very expensive. As a result, some percentage of valid claims are not filed because the losing party cannot bear the risk of losing.
Fortunately those fees are capped at something reasonable and rarely approach the actual costs. Still, it is a risk that you probably shouldn't take for a hobby project, it's all downside and very little upside.
for example, in the UK[0], if you lose a lawsuit, you have to pay not only your attorney's fees, but the other party's attorneys fees. It gets very expensive. As a result, some percentage of valid claims are not filed because the losing party cannot bear the risk of losing.
0 - https://en.wikipedia.org/wiki/English_rule_(attorney%27s_fee...